As the crisp air of late November settles in and families gather around tables laden with turkey, cranberry sauce, and pumpkin pie, we’re reminded that Thanksgiving is as much about gratitude and connection as it is about the feast. This season of giving thanks naturally invites us to reflect not only on our blessings, but on the ripple effect that generosity can create in our communities.
As a reminder, as you look at year-end giving, here are just a couple of options that may be worth your consideration:
- Giving appreciated securities: With the stock market near all-time highs, many of you may have shares of individual stock or mutual funds/ETFs that have significant gains. If invested in a taxable account, you can avoid the capital gain by gifting shares of the appreciated security to a qualified charity. This allows for the charity to get the full value of the gift (versus you selling shares, paying capital gains taxes, and gifting the charity the difference). The charity will not owe any taxes when they sell the security.
- Consider gifting directly from an IRA: For those over age 70½, gifting money directly from an IRA to a qualified charity is called a Qualified Charitable Distribution (QCD). With increased standard deductions, this allows for a tax benefit of the gift without the need to itemize deductions, as the gift from the IRA directly to a charity is not considered taxable to the donor.The annual dollar limit on a QCD is $100,000. As a bonus, for those of required minimum distribution (RMD) age who do not need the required distribution to meet their ongoing expenses, a QCD also counts towards satisfying an RMD.
Have questions about either of these options? It’s always good to talk to your tax professional, though we are also happy to discuss your particular situation.
Wishing you a meaningful Thanksgiving and a fulfilling season of giving!
This information is not intended to be a substitute for specific individualized tax advice. We suggest you discuss your specific tax issues with a qualified tax advisor.